Which of the following items has no effect on stockholders' equity?
A)Receipt of cash owed to the business (accounts receivable)
B)Sale of a service
C)Payment of an expense
D)Dividend distributions

Question

Quizplus · Accepted Answer

Receipt of cash owed to the business (accounts receivable) does not affect stockholders' equity because it is merely a conversion of one asset (accounts receivable) to another (cash), without impacting the owners' equity.

Which of the Following Items Has No Effect on Stockholders